RERA: Here’s everything you need to know

*Image Source Google

RERA is a regulatory body
with the sole aim of protecting the buyer’s interest. The act has come in to
effect by keeping in view the increasing number of incidents of complaints
against the developers and buyers. In fact, now home buyers can finally be able
to say good bye to the delay in projects and shoddy quality construction. So here’s
what RERA has in store for home buyers. Let’s take a look –

1- Quality of
construction: The quality of construction has been one of the major concerns
with several builders. RERA offers protection against this up to 5 years after
possession. In case of structural defect or any other major defect, it will be
the duty of the promoter to rectify the issue within 30 days.

2- Delay in
delivery: Untimely delivery of real estate projects have been the buyer’s
biggest pain. As per the RERA act, promoters have to maintain a separate
account for every project. In this account, 70 percent of the amount received
from the buyers shall be deposited. These funds can only be used for
construction purpose and land cost.

3- Regulatory
authority’s role: It will solely be the responsibility of a regulatory
authority to register and regulate real estate projects registered under this
act. Moreover, it will also be required to maintain a website for public
viewing of all the projects for which the registration has been done.

4- Booking amount:
Earlier, builders used to ask for 10 percent of the total cost of the property
as a booking amount. But, after the implementation of RERA act, a developer
cannot accept more than 10 percent of the cost of property as application fee
or advance payment, without first entering the agreement for sale.

Over and all, RERA seeks to
improve the overall experience of buying a new house. But, what really needs to
see is if the RERA can be as effective as the capital markets regulator, SEBI
(Stock and exchange board of India). Besides, to avoid any wrongdoing with the
buyer, several real-estate developers, such as Lodha Group